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Q117 (CDS-I/2023) Economy › Growth, Development, Poverty & Employment › Poverty measurement methods Answer Verified

The computation of poverty in terms of Monthly Per Capita Consumption Expenditure (MPCE) based on the Mixed Reference Period was recommended by the

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Your answer: —  Â·  Correct: B
Explanation

The Tendulkar Committee (2009) recommended significant shifts in India's poverty estimation methodology. It moved away from the traditional calorie-based approach to a more comprehensive Monthly Per Capita Consumption Expenditure (MPCE) framework [1]. A key recommendation was the adoption of the Mixed Reference Period (MRP) for data collection, replacing the Uniform Reference Period (URP) used by previous groups like the Lakdawala Committee. Under MRP, data for low-frequency items (clothing, footwear, durables, education, and institutional health) are collected for a 365-day recall period, while other items use a 30-day recall period [1]. This shift aimed to capture consumption patterns more accurately and align poverty lines with the private expenditure on health and education. While the Rangarajan Committee later introduced the Modified Mixed Reference Period (MMRP), the initial recommendation for MRP-based MPCE computation was a hallmark of the Tendulkar methodology [1].

Sources

  1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > ESTIMATES AS PER THE 61ST ROUND OF NSSO VERSUS TENDULKAR COMMITTEE ESTIMATES > p. 40
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